SEDC Energy Sdn Bhd a full-fledged oil company

Federal Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi speaks during the ceremony. Photo: UKAS

KUCHING: SEDC Energy, a wholly owned subsidiary of Sarawak Economic Development Company (SEDC), has been given the authority to act as a full-fledged oil company.

In revealing this, Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi said the decision was made by the federal government as it realises the potential and impact of the oil and gas sector to the nation’s economy.

“The government has decided to give permission to SEDC Energy Sdn Bhd to conduct its own downstream sales of petrol and diesel, to act as a full-fledged oil company and carry out sales activities under its own brand.

“In my opinion, this is a very good decision, not only because the downstream oil and gas market in the country is quite wide, but also because this will increase the competitiveness in this industry.

“This is where the positive impact in terms of product and service quality will be benefited by the people,” he said on Thursday (Sept 9).

Earlier, he attended a ceremony to present a letter of exemption on federal laws for the distribution of Liquefied Petroleum Gas (LPG) in Sarawak to SEDC Energy.

During the ceremony, a letter of approval for SEDC Energy to operate as a full-fledged oil company was also presented by Sarawak Federal Secretary Datuk Amir Omar to SEDC Energy general manager Abdul Hadi Datuk Abdul Kadir.

Nanta, who is also Kapit MP, said at the same time, with SEDC being involved in the downstream business, it will yield significant economic returns to the state.

“The involvement of SEDC as an investment entity owned by the state government in this downstream business is seen to generate income for Sarawak.

“The increased involvement of the state in the huge oil and gas industry is one of the main contributors to its Gross Domestic Product,” he said.

Nanta added that the government’s decision to grant permission to SEDC Energy is a testament of its confidence in the state.

“This is in terms of the ability of the Sarawak state government and SEDC in engaging in the wholesale and retail business of petroleum,” he said.